Staff provident fund organization
The Employees Provident Fund Organization (EPFO) has made major changes in the Employees Deposit Linked Insurance (EDLI) scheme. Now there will be no strict conditions like before to take advantage of this scheme, which will directly benefit millions of employees and their families. Especially those families whose earning members pass during the job for some reason.
Now guarantee minimum insurance amount
The Union Ministry of Labor and Employment has made it clear that if an employee dies during a job, then his family will get an insurance benefit of at least Rs 50,000, even if there is no amount in the employee’s PF account. Earlier it was necessary that at least 50,000 rupees were deposited in the account, only then the benefit of insurance was available. Now this condition has been removed.
60 -day job gap will not be considered a break
Another major change in the rules has been made that if an employee has a maximum break between two jobs, it will not be considered a job obstruction. That is, up to 60 days of gap will not have any effect in counting 12 months of continuous service. This will benefit those employees who have worked in different companies but there has been a little break in the middle.
Benefits will be available for 6 months after death
According to the new rules, even if an employee dies within 6 months of getting the last salary, his nominated person (nominee) will get the insurance benefit of the EDLI scheme. That is, even if the death of PF from the salary, the nominee will get the benefit of insurance.
What is EDLI scheme?
Employees Deposit Linked Insurance Scheme (EDLI) is run under EPFO. The purpose of this is to provide insurance protection to the employees of the organized sector in the event of unexpected death during the job. In this scheme, the employee does not have to contribute to his pocket. On death, the legal heir gets a lump sum. An insurance cover ranging from Rs 2.5 lakh to Rs 7 lakh is given under this scheme.